With thousands of credit recovery companies doing business across the country, finding the right one can be difficult and daunting, but it is imperative that you take the time required to not only find a reputable company but also find one who have the knowledge, experience and ability to deliver the level of service you expect and the optimal results you deserve. Your decision should not be impulsive. Choosing a bad credit recovery organization will leave you vulnerable and increase the likelihood that further damage will be caused by your personal credit file, but on the other hand, choosing a good credit recovery organization has the potential to be one of the best financial decisions for you. life by dramatically cleaning up your personal credit file and improving your credit score. There are several items to consider in addition to price when making your decision. It is imperative to recognize the difference between price and value, as it is almost always a case of seeking help from a company in the credit repair industry: "You get what you pay for". The following sections explain the four types of credit companies that make up the industry and what to expect from each one.

Credit repair company type 1:
The first type of credit repair company is typically a one-man show that runs out of a home office. Generally, these types of companies advertise extremely low prices for their service and will usually have incredible service guarantees to top-off. It is not uncommon for this type of credit recovery organization to be a complete scam and take consumer money without providing any service at all. Additionally, if you are dealing with a company that falls into this category, you are lucky if the only thing you lose is your money and not your identity in the process. In this day and age, identity theft occurs in epidemic conditions. Unless you know the business must be reputable, think twice before disclosing your personal identification information.

While all credit recovery organizations that fall into this category are not scams, it is very common for the individual who runs this type of business to be completely unaware of the compliance that all credit recovery organizations must adhere to. This company will typically use 3 or 4 standard dispute letters that are extremely generic and not intended to be used in any situation. While the use of regular litigation letters can provide a certain level of positive results, their use also has the potential to further damage your credit. In addition, the use of ordinary dispute letters usually only provides temporary results as the negative information removed from your personal credit file is likely to appear on your credit file the next time it is reported by the creditor.

Credit repair company type 2:
The other type of credit repair business generally seems to be much more legitimate. They have a physical office, but similar to type 1 credit repair company, they only use the same standard dispute letters mentioned above. Although it typically does not intend to operate illegally, compliance issues are usually overlooked. The main difference between credit repair company types 1 and 2 is that the other usually uses a cheap software program that allows it to produce volume and handle clients on a much larger scale. The letters used are extremely generic and therefore do not get the best possible results. While this type of credit recovery business may be conducting a large amount of business, they are not ready to deal with consumers who have specific credit related issues. This type of credit recovery business uses more of a cookie cutter approach.

The first two types of credit companies mentioned make up more than 90% of the credit repair industry. Credit repair companies types 3 and 4 are completely different and represent less than 10% of the industry. It is very important to note the differences.

Credit repair company type 3:
Not only is the third type of credit repair business usually compliant with the law of credit recovery organizations, but it is also usually well known in the US code used to dispute negative credit records in the consumer credit file. Using more than just regular litigation letters, this type of business can be much more efficient than the first two. https://www.gatewaycreditservice.com/

Author's Bio: 

Other credit repair techniques used by credit repair attorneys include negotiating with creditors.